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29/05/24
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Crude Prices Higher on Expected OPEC+ Output Cuts Extension
On Wednesday, crude prices touched a 4-week high on expectations that OPEC producers will extend output cuts at Sunday’s meeting and that fuel consumption will begin increasing as the peak summer demand season starts.
Brent crude futures were 19 cents, or 0.2% higher, at $84.41 per barrel, after touching $85.02, the highest level since May 1.
U.S. West Texas Intermediate futures were 34 cents, or 0.4% higher, at $80.17, after touching $80.62 the highest since May 1.
On Tuesday, both benchmarks rose over 1%.
Analysts and traders expect OPEC+ to keep voluntary production cuts of around 2.2M barrels per day in place.
Prices were also supported by the start of the summer season in the northern hemisphere when demand for aviation and road fuels peaks.
Investors were waiting for the American Petroleum Institute’s U.S. crude inventory data later today. The release is a day later than normal due to Monday’s Memorial Day holiday. It is expected U.S. crude oil stockpiles will have dropped by around 1.9B barrels last week.
Investors are also waiting for April’s U.S. core personal consumption expenditures (PCE) price index report due to be released on Friday.
The Federal Reserve’s preferred inflation gauge will likely be steady on a monthly basis, which could affect oil prices.
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